As an 'investor' in VRUS, a long time 'investor', I contacted Mark Forney right after the 8-K was released today. Below you'll see his response to my questions and statements. I have copied and pasted his return email, not leaving one word out.
------------------------------------------------------------------------------------------------------
Mark Forney
7:54 PM (1 hour ago)
to Robert
Robert,
I actually have an update on the 8-K question that you asked. They will file an additional 8-K when the deal is fully completed, so there will be a second TAM 8-K in a matter of days.
I pass along the sentiment, so you can be sure that your words are shared. As for this recent note, you will notice it is smaller and has a year term, so it should be looked on as an interim note based on immediate needs, as part of the company's rapid growth profile. The goal is to never let these notes convert, so the last notes that were converted were a function of the audit issues. This is a tough time in the lending markets, so as rough as the terms are for these notes, Verus needs funds to keep moving forward on much bigger things. Eventually, they will exit this kind of funding, but it is the fastest route to their immediate goals.
The company has reopened its efforts to get commercial credit, but today's note was necessary for some pending activities. The company will be providing some additional updates in the near future that will explain the road map for the next quarter.
Mark
